Chandigarh, July 24, 2024 (Yes Punjab News)
The Punjab Finance Minister Advocate Harpal Singh Cheema today clearly stated that the State Government led by the Chief Minister Bhagwant Singh Mann has emphatically taken up the case of the State with regard to the targets for overall development, challenges and the requirements, with the 16th Finance Commission and he is confident that in the light of the facts shared with the Finance Commission, the commission would recommend to the Union Government for making provision of Rs. 1,32,247 Crore in respect of the State.
In a press conference here at the Punjab Bhawan, the Finance Minister pointed out that in the memorandum given to the Chairman of the Finance Commission Mr. Arvind Panagariya, the Punjab Government has comprehensively highlighted the financial condition of the State since 1980s.
He mentioned that the representation to the Finance Commission was divided into 14 sections, sharing details about the state’s economy, funds and future projections. He added that the memorandum not only included the state’s demands but also outlined the Punjab government’s commitments to improve the state’s fiscal health.
Highlighting the unique features of the memorandum submitted to the 16th Finance Commission, the Finance Minister said that on the basis of the Scheduled Castes population in the state, the Punjab government has proposed 5 percent increase in formula of horizontal devolution in the 16th Finance Commission for Scheduled Caste population against 0% in the 15th Finance Commission. Besides this, an increase from 2.5% recommended by the 15th Finance Commission to 5.00% for the 16th Finance Commission has been proposed for tax efforts.
The Finance Minister also highlighted the loss encountered by Punjab on account of implementation of GST. He shared that as per internal assessments of Department of Excise and Taxation, had the VAT regime continued, the State would have earned upwards of Rs. 45,000 Crore as against the budgeted GST of Rs.25,750 Crore in current FY. This gap is expected to magnify even further in 2030-31 with VAT estimated at Rs. 95,000 Crore and GST at Rs. 47,000 Crore.
Finance Minister Advocate Harpal Singh Cheema, while referring to the commitments made by the Punjab government to the 16th Finance Commission, said that our government has vowed to increase capital expenditure to minimum 1.5% of the state’s Gross Domestic Product (GSDP), reduce outstanding debt, increase revenue receipts further which are already above the national average, and rationalisation of wasteful expenditures.
Responding to a media query, he affirmed that the Punjab government will not abolish power subsidies, but instead reduce energy production costs by opting for more and more renewable energy sources.
Giving details of the special package requested from the 16th Finance Commission for a five-year period, the Finance Minister said that the Punjab government has sought Rs.75,000 crore as development grant, Rs.17,950 crore for agricultural and crop diversification to further boost farmer’s prosperity and income, Rs. 5,025 crore for tackling the stubble burning and making alternative arrangements, Rs.8,846 crore to combat narco-terrorism and drug addiction, Rs.6,000 crore for revitalizing industries (MSMEs) and Rs.9,426 crore for urban local bodies.
Highlighting the significance of these requested packages, Finance Minister Advocate Harpal Singh Cheema said, Punjab has been facing discrimination since long, pointing out that providing special industrial packages to neighbouring hill states such as Himachal Pradesh and Jammu & Kashmir while neglecting Punjab for the same has led the state’s industry into a critical phase.
These packages are being used to incentivize industrial migration from Punjab, with Himachal Pradesh selecting border towns like Baddi and Solan and now Jammu & Kashmir choosing Kathua on Punjab’s border, noted the Finance Minister, while asserting that neglecting Punjab’s border districts adjacent to Pakistan for such packages is a blatant injustice to a state that has made sacrifices for the nation and filled its granaries.
Finance Minister Harpal Singh Cheema said that in the case presented to the Finance Commission, along with demanding a lump sum compensation to mitigate the economic losses due to trade restrictions at the Attari-Wagah border, annual compensation has also been requested until the corridor reopens.
He said that through this international trade route, Punjab’s agricultural products could reach Central Asian countries. He questioned why trade cannot be conducted via the Attari-Wagah border when the same is allowed through Gujarat ports?
Finance Minister Harpal Singh Cheema expressed confidence that the Finance Commission will sympathetically consider the state government’s demands and recommend centre government for generous fund allocation to Punjab.
